Student Loan Debt Consolidation Tips
My name is Carl Willoughby aka MoneyPlus2000.
I should have called myself MoneyMinus$20,000.
After getting “screwed” by the banks for many, many years,
I’ve decided to write about my financial experiences.
This will serve as a good example of what a bad example
looks like. Hopefully, you can learn from my mistakes and
misfortunes and avoid them for yourself.
I was a little slow paying back my student loans.
Not just a few weeks or a few months… a few decades.
The first “Tip” I can give you on student loan debt
consolidation is… Don’t default on your student loan.
Student Loan Borrowers who don’t make payments for
270 days are in default.
Defaulting has severe and long-lasting consequences.
What happens when you don’t pay your student loans?
Borrowers with loans in default are ineligible for deferments.
The Department of Education can immediately…
demand repayment of the total loan amount due.
(If you can’t afford to make a monthly payment,
how can they expect you to pay the entire balance in full?)
This is where they take advantage of your lack of resources
and put the screws to you.
The Department of Eduction will attempt to collect the debt and
may / and they (WILL) charge collection costs.
The Department of Education reports defaulted loans to all the
national credit bureaus - (Trans Union, Experian and Equifax).
This will damage your credit ratings and, make it difficult
for borrowers to make purchases on things such as cars
or homes, rent an apartment or even buy a Playstation.
Borrowers with defaulted loans are ineligible for
Title IV student aid.
The Internal Revenue Service can withhold borrowers’
Federal income Tax Refund. (This REALLY SUCKS!)
Borrowers’ Wages May Be Garnished.
(This SUCKS even MORE).
Note: (They just INCREASED the amount of withholdings from
10% of the GROSS to 15% of your GROSS paycheck).
After Social InSecurity and all the other taxes you pay,
you only take home about 1/2 of what you actually earned.
6 months of your annual salary is gone…Poof!
Borrowers with defaulted FFEL or Direct Loan Program loans
may / (WILL) be liable for collection costs incurred to collect.
If the holder of the defaulted loan (which may be either the
U.S. Department of Education or a guaranty agency) retains
a collection agency to collect defaulted loans…
…Charges imposed by the collection agency may / (WILL)
be added to the amount borrowers owe.
This means that the amount of your Student Loans may include
collection costs of up to 18.5% of the principal and interest
outstanding on the defaulted loan.
ALL OT THESE THINGS HAPPENED TO ME!
TAGS:
Equifax, Experian, Trans Union